CW – Americas Data Center Update, 1H 2024

The Americas data center market saw strong growth in the first half of 2024, driven by the increasing demand for AI and cloud data centers. Power availability is a critical concern, with developers exploring new geographic areas to meet demand. Absorption of data center space exceeded leasing velocity, with most projects being preleased or built-to-suit for hyperscalers and AI deployments. Operators are facing challenges in securing power, leading to collaborations with energy generation developers for substations and alternative power sources like wind and solar. As hyperscale growth continues, new data center markets are emerging, prioritizing power transmission and hyperscaler deployment. North America has reached 18.5GW of operational capacity, with Virginia leading as the largest data center market. Other key markets include Atlanta, Phoenix, Chicago, Dallas, and Silicon Valley. Emerging markets like Portland + Eastern Oregon and Columbus have also seen significant growth driven by hyperscale and colocation deployments.